H. Rosenblum, Inc., a New Jersey Corporation, Summit Gift Galleries, Inc., a New Jersey Corporation (Formerly Known…

Summary

The Supreme Court of New Jersey reversed the trial court’s partial summary‑judgment dismissal of the plaintiffs’ negligence claim based on the 1971 audit and affirmed the denial of summary judgment for the 1972 audit, holding that an auditor owes a duty of care to foreseeable users of its audited financial statements for proper business purposes. The Court adopted a foreseeability‑based rule limiting liability to those who receive the audit in the ordinary course of business.